Uniswap Introduces Dynamic Fees for Stable-Pair Pools
Uniswap Labs has launched StablePair Hook, a tool for Uniswap v4 that dynamically sets liquidity-provider fees for two stable-pair pools on Ethereum. The launch covers USDC/USDT and USDC/USDG.
The new mechanism aims to balance the tradeoff between low fees and competitive quotes. A fixed-fee stable-pair pool charges the same percentage when its assets are near parity and when they have moved apart, while a dynamic fee adjusts according to the pool's price and trade direction.
StablePair configures each pool with a reference rate and a narrow band around it. The hook sets the LP fee from the pool price, its distance from the reference rate, and the direction of the proposed trade. Inside the band, the fee changes to maintain consistent pre-price-impact buy and sell quotes.
Outside the band, a trade pushing the pool farther from the reference rate pays no fee because it does not extract existing mispricing. A corrective trade faces a fee that starts at the far edge of the band and decays once per block until someone accepts it; the pool collects the fee charged at execution.